Blog | Charles IT

Preparing for DoD Contracts: A Step-by-Step Guide to CMMC Compliance in 2025

Written by Alex Ceneviva | Mar 13, 2025 12:31:12 PM

Introduction

For businesses aiming to secure Department of Defense (DoD) contracts, meeting the Cybersecurity Maturity Model Certification (CMMC) requirements is essential. CMMC ensures that defense contractors follow strict cybersecurity protocols to protect Controlled Unclassified Information (CUI) and maintain national security. With CMMC 2.0 now in effect, companies must understand the latest compliance requirements to stay competitive and avoid losing bidding opportunities.

Worried about losing bids? Here's a DoD Bidding checklist to help. 

The updated framework streamlines the certification process from five into three levels: Foundational, Advanced, and Expert. While Level 1 contractors can now self-assess, Level 2 contractors handling critical information will require third-party audits every three years, and Level 3 contractors must pass government-led assessments. Companies must also submit annual affirmations, and those not fully compliant may still bid on less sensitive contracts if they provide a detailed Plan of Action and Milestones (POA&M). Additionally, cloud service providers (CSPs) and managed service providers (MSPs) have clearer guidelines on their compliance responsibilities.

Beyond CMMC, businesses must also meet DFARS (Defense Federal Acquisition Regulation Supplement) compliance requirements, which mandate adherence to NIST SP 800-171 cybersecurity controls for handling CUI. DFARS compliance is a crucial stepping stone for companies aiming for full CMMC certification.

With CMMC requirements starting to appear in contracts in early 2025 and full implementation expected by October, businesses must act now to achieve compliance. In this blog, we’ll break down the key elements of the CMMC framework, the steps businesses need to take to achieve compliance, and how MSPs and compliance experts can help streamline the process so you can stay in the game and continue bidding on DoD contracts.

Understanding the CMMC Framework

To achieve CMMC 2.0 compliance, businesses need to understand the three maturity levels, which define the cybersecurity standards required based on the sensitivity of the information they handle. CMMC 2.0 simplifies the previous five-level system into three distinct levels, streamlining the certification process while maintaining strong security protections.

  • Level 1 (Foundational) applies to contractors handling only Federal Contract Information (FCI), which includes general data related to government contracts but does not contain sensitive classified material. At this level, businesses must implement 17 basic security controls, such as restricting access to authorized users and monitoring systems for unauthorized activity. Unlike higher levels, Level 1 contractors can conduct self-assessments annually.

  • Level 2 (Advanced) is required for companies that handle Controlled Unclassified Information (CUI), which includes sensitive but unclassified data that, if compromised, could pose security risks. To align with the National Institute of Standards and Technology (NIST) Special Publication 800-171, Level 2 businesses must implement 110 security controls covering access control, incident response, and data encryption. While some Level 2 contractors can self-assess, those handling more critical CUI will be required to undergo a third-party assessment every three years to verify compliance.

  • Level 3 (Expert) is the strictest and is intended for organizations working with highly sensitive DoD information that may be targeted by Advanced Persistent Threats (APTs). This level builds on the requirements of Level 2 and incorporates additional security measures from NIST SP 800-172. Companies at this level must undergo triennial government-led assessments, ensuring that their cybersecurity posture meets the highest security standards required for national defense operations.

By implementing the appropriate controls for their required maturity level, contractors can ensure they meet cybersecurity standards while maintaining eligibility for government contracts and avoiding costly disqualifications.

Steps to Prepare for CMMC Compliance

Conducting a Gap Analysis of Current Security Measures

The first step toward CMMC compliance is evaluating your organization’s existing cybersecurity measures to determine where improvements are needed. A compliance gap analysis identifies weaknesses in your security posture and pinpoints which controls must be implemented to meet CMMC requirements and DFARS regulations.

Implementing the Necessary Security Controls and Best Practices

Once security gaps have been identified, the next step is to implement the required security controls and best practices to meet CMMC standards. This includes strengthening access controls, improving threat detection, and ensuring continuous monitoring of sensitive data.

A trusted managed service provider (MSP) can simplify this process by helping businesses implement and maintain these controls efficiently. Charles IT, for instance, specializes in guiding organizations through CMMC 2.0 compliance, offering tailored solutions such as:

  • Backup and Disaster Recovery – Protecting critical data to ensure business continuity.

  • Endpoint Encryption – Securing all devices that access sensitive information.

  • External Vulnerability Scanning – Identifying and addressing potential security gaps.

  • SIEM Solutions – Providing centralized monitoring and real-time threat detection.

  • Security Awareness Training – Educating employees on best practices to prevent human error.

  • Dark Web Monitoring – Identifying compromised credentials before they become a security risk.

Leveraging Government Funding Programs for DoD Bidding

Achieving CMMC compliance can be costly, but businesses can take advantage of government funding programs to offset expenses. The DoD offers grants and assistance through programs like the Defense Cybersecurity Assistance Program (DCAP), which provides financial aid to small and mid-sized contractors looking to meet cybersecurity requirements. Additionally, the Small Business Innovation Research (SBIR) program and other federal initiatives offer funding to help businesses enhance their cybersecurity measures and maintain compliance.

How MSPs and Compliance Experts Can Help

Navigating the complexities of CMMC 2.0 compliance is a challenging task, and attempting to do it alone can lead to costly mistakes. That’s why partnering with a trusted IT provider or managed service provider (MSP) is essential. These experts bring the knowledge, experience, and technical resources needed to guide businesses through the compliance process, ensuring nothing is overlooked so you don’t risk disqualification from lucrative DoD contracts.

An experienced IT provider plays a crucial role in helping businesses meet and maintain CMMC 2.0 standards. From conducting initial risk assessments to implementing security controls, an MSP takes on the heavy lifting so you can focus on running your business. Key benefits of working with an MSP include:

  • Expert Guidance – IT providers understand the evolving CMMC framework and ensure your security measures align with the latest requirements.

  • Risk Mitigation – By identifying vulnerabilities early, an MSP helps prevent compliance failures that could put your contracts and reputation at risk.

  • Efficient Implementation – IT providers streamline the adoption of necessary security controls, making the transition to compliance as seamless as possible.

Conclusion

As the CMMC 2.0 requirements draw closer, it’s crucial to start your compliance efforts now to ensure your business is ready for upcoming audits and contracts. Delaying these steps can result in costly setbacks and missed opportunities with the Department of Defense.

To streamline your path to certification and avoid potential pitfalls, consider seeking professional guidance. At Charles IT, we specialize in helping businesses navigate the complexities of CMMC compliance.

Sign up today for a free CMMC assessment and claim your DoD Bidding Blueprint: 5 Steps to CMMC Success to ensure your business remains eligible for government contracts.